Large Group News
Published October 19, 2021
If you have received Rx rebates you will see a new line item on your
Quarterly Paid Rebate Report starting with the Q2 2021 reports scheduled to be
released on October 29, 2021. This new line item depicts B&O Tax
Withholdings for Rx rebates.
Premera Blue Cross pays B&O taxes on our self-funded revenue
including Rx rebates. During a recent review of these payments, it was decided
to begin passing through the tax for Rx rebates to align with our standard
corporate practices. Premera will not retroactively recoup taxes paid prior to
Q2 2021.
The amount withheld is based on the 1.225% B&O tax, which is
the corporate-wide tax rate Premera pays on Rx rebates. It is assessed as a
flat amount to all groups regardless of group and member location. The state
does adjust the rate periodically, and as such, we will adjust our rate passed
on to groups accordingly.
For
questions about this change, please contact your Premera representative.